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 Forest Science for Sustainable Development of Forests25 Years of Forestry of the Republic of Srpska - confOrganiser.com

Forest Science for Sustainable Development of Forests
25 Years of Forestry of the Republic of Srpska

December 7 - 9, 2017.

Ranking of forest enterprises organizational units in accordance with the possibilities of differential rent allocation

Author(s):
1. Dragan Čomić, Šumarski fakultet Banja Luka , Republic of Srpska, Bosnia and Herzegovina
2. Zoran Govedar, Šumarski fakultet Banja Luka , Republic of Srpska, Bosnia and Herzegovina
3. Vojislav Dukić, Šumarski fakultet Banja Luka , Republic of Srpska, Bosnia and Herzegovina
4. Ratko Čomić, Šumarski fakultet Banja Luka , Republic of Srpska, Bosnia and Herzegovina
5. Branko Glavonjić, University of Belgrade-Faculty of Forestry, , Serbia
6. Branislav Cvjetković, Šumarski fakultet Banja Luka , Republic of Srpska, Bosnia and Herzegovina
7. Vladimir Petković, Šumarski fakultet Banja Luka , Republic of Srpska, Bosnia and Herzegovina


Abstract:
A rent, as an income, is based on the ownership rights and is present in all fields where natural conditions, primarily soil, have a significant role in the process of biological production. Its basic purpose in forestry should be management sustainability, which refers to the use of forests in accordance with the principle of production continuity. Neglecting a rent in forestry, as an economic category, may have a harmful effect on the forest fund, since it may cause a decline in production and reproduction in forestry without possibility to intervene in time if not timely recognized and periodically monitored. As stated in the the Study: A proposal of measures for redefining the organizational, economic and personnel conditions in PFE Forests of the Republic of Srpska (Government of the RS, 2015), the costs of production services when producing forest wood assortments, vary from one organizational unit to another, but it amounts approximately BAM 30/m3 (about EUR 15/m3). This variation of costs, with approximately the same selling prices, causes differences in the achieved profit of each PFE organizational unit. In fact, this is a consequence of various natural and economic conditions in which production takes place. On this basis, PFE organizational units with the costs of production services lower than the average, make extraprofit due to natural advantages, more favorable location and lower transportation costs. This extraprofit is in the form of differential rent of the position and site quality. The main objective of this paper is to define a model which would, through a multicriteria analysis, be used to define positions or ranking of certain PFE organizational units within the system of PFE Forests of the Republic of Srpska, in accordance with the possibilites of allocating the funds for differential rent. In this sense, considering the original 84 variables, after 118 participants were questioned, 10 variables were selected and analyzed in detail. On the basis of the obtained results, as well as the previously defined methodology, organizational units were ranked in the system of PFE Forests of the Republic of Srpska, in accordance to the real possibilities of allocating the funds of differential rent. The defined methodology is multicriterial, but within the overall research, individual PFE organizational units were ranked by individual variables. The aim was to create a not too complicated and widely applicable methodology, which would be used for forest enterprises organizational units ranking in other regions/states as well. Basic research techniques and methods used in this paper are analysis, classification, synthesis, comparation, Parreto analysis, modelling, desk method, survey.

Key words:
differential rent, FEU ranking

Thematic field:
Forest policy, economics, and organization in forestry

Date of abstract submission:
12.10.2017.

Conference:
Šumarska nauka u funkciji održivog razvoja šumarstva
25 godina šumarstva Republike Srpske

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